The energy sector once again is the biggest contributor of Q1 earnings growth with total earnings expected to be up 70.8% from the year-ago period on 15.4% higher revenues. Added to the strength is the recent surge in oil price that made the sector more impressive.

However, reports from two U.S. supermajor oil producers, Exxon Mobil (XOM - Free Report) and Chevron (CVX - Free Report), on Apr 27 led to mixed reactions in the broad energy space. Chevron shares popped and took full advantage of the oil price rally, while Exxon Mobil dropped and missed estimates.

Earnings in Focus

The largest U.S. oil company, Exxon Mobil, reported earnings per share of $1.09, falling short of the Zacks Consensus Estimate of $1.14 but improving from the year-ago earnings of 95 cents. Revenues climbed 16.3% year over year to $68.21 billion and edged past the estimated $66.07 billion. The stock shed 3.8% on disappointing results.

Chevron, which trails Exxon Mobil, reported mixed results. Earnings per share came in at $1.90, 45 cents ahead of the Zacks Consensus Estimate and was higher than the year-ago earnings of $1.41. Revenues rose 13% year over year to $37.76 billion but fell shy of the estimated $38.74 billion. Shares of CVX were up 1.9% on the day.

Investors should note that both stocks have a Zacks Rank #3 (Hold) and a VGM Score of B. The duo belongs to a top-ranked Zacks industry (top 37%).

ETFs in Focus

Following the results, energy ETFs having the largest allocation to these behemoths are down more than 1% on the day and are in focus in the days ahead. These funds also have a Zacks ETF Rank #3.

Energy Select Sector SPDR (XLE - Free Report)

This is the largest and most popular ETF in the energy space with AUM of $18.5 billion and average daily volume of around 14.6 million shares per day. Expense ratio comes in at 0.13%. The fund follows the Energy Select Sector Index and holds 31 securities in its basket. XOM and CVX occupy the top two spots with 22.7% and 16.9% share, respectively.

iShares U.S. Energy ETF (IYE - Free Report)

This ETF tracks the Dow Jones U.S. Oil & Gas Index, giving investors exposure to the broad energy space. It holds 67 stocks in its basket with AUM of $1.1 billion and average daily volume of about 541,000 shares. The product charges 44 bps in fees per year from investors. Exxon Mobil and Chevron occupy the top two positions in the basket, taking the bigger chunk of assets at 20.9% and 15.4%, respectively.

iShares Edge MSCI Multifactor Energy ETF (ERGF - Free Report)

This ETF follows the MSCI USA Energy Diversified Multiple-Factor Capped Index and targets companies, with the potential to outperform the broad U.S. energy sector. Holding 22 stocks in its basket, XOM and CVX are the top two firms with 20.5% and 18.2% allocation, respectively. The product has accumulated $2.9 million in its asset base and trades in a paltry volume of 1,000 shares per day on average. It charges 35 bps in annual fees.

Vanguard Energy ETF (VDE - Free Report)

This fund manages about $4.3 billion in asset base and provides exposure to a basket of 142 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. The product sees a good volume of about 304,000 shares and charges 10 bps in annual fees. Here again, Exxon and Chevron are the top firms with 21.2% and 14.5% allocation, respectively.

Fidelity MSCI Energy Index ETF (FENY - Free Report)

The fund follows the MSCI USA IMI Energy Index, holding 130 stocks in its basket. Out of these, XOM and CVX take the top two spots at 20.2% and 14.7%, respectively. The product charges 8 bps in annual fees and trades in a good volume of around 310,000 shares. It has accumulated $565.6 million in its asset base.